Private consumption to remain an important pillar of growth
While private consumption growth looks set to weaken slightly, from 2.1% in
2017 to 1.8% in 2018, it will nevertheless remain one of the key pillars of growth
in 2018, together with capital expenditure.
Each of these two segments will
probably contribute c. 1 pp to growth. Our forecast is based on the assumption
that employment will continue to rise and that the upcoming wage negotiations
in 2018 will result in healthy wage increases. In addition, favourable financing
conditions should continue to support private consumption. The dampening
effects of rising energy prices are likely to be offset by an appreciation of the
euro.
EU Forecast
euf:ba18h:97/nws-01